Fractional Ownership

Written by Diane Sievert
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Fractional ownership is one of many options available in today's vacation ownership market. However, unlike some of their product peers, fractionals are a relatively new commodity. Seeing as fractional sales have taken off over the past few years, it appears there is a high demand for this particular kind of vacation ownership and according to current sales reports, there's virtually no end in sight.

Fractionals vs. Time Shares

All too often people confuse fractional ownership with time share ownership. While these two products share certain conceptual similarities (they both sell a particular interest, fraction or share of a vacation home) they are actually quite different. Fractional ownership offers a very unique kind of vacation home.

Time shares generally sell relatively small interests. Most time shares are sold in one or two week increments and they rarely exceed four week increments. Also important is the size of most time share units--the most popular kind of time share unit is a one bedroom condo.

Fractionals, on the other hand, are rarely sold for less than four week increments and the most popular fractions sold are sevenths and eighths (which average out to seven or six week increments). Fractional units also tend be far more luxurious than your average time share unit. The most popular units of fractional ownership are three and four bedroom condos, town homes and houses.

Fractional Ownership Information for Consumers

If you want to know more about investing in a fractional second home, you've come to the right place. Fractional ownership is quite expensive and it's a decision you'll want to consider carefully before signing on the dotted line. Doing some research into your options is obviously the first step.

Before signing anything, it's imperative that you do your research and cover all the basics of fractional ownership. Online sites can help you review all the subtypes of fractional ownership, like PRCs and exchange programs, but also tell you where to go next if you're still interested. Shopping for a fractional home will be that much easier if you know exactly what it is you're looking for.

Fractional Ownership Information for Developers

If you're looking into developing a fractional resort for your next big business venture, fractional ownership informational websites can help. Having done extensive research into current market trends, these sites can tell you what's an open market and what's not. Many will also provide in-depth costs analyses so you'll know what kind of budget is necessary for fractional development projects.

Perhaps you've already begun development and now you're looking into marketing strategies. Lucky for you, there are sites that cover those, too. Many online retailers and real estate gurus have done the research enabling them to identify successful marketing and pricing policies so your project will be a most profitable investment.


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